Oraclum Capital founder accused of falsifying hedge fund returns
Vuk Vukovic, co-founder of New York-based hedge fund Oraclum Capital, has been charged by US prosecutors with securities and wire fraud over allegations that he misrepresented the performance of the firm’s investment fund to clients, according to a report by Bloomberg.
New York-based hedge fund Oraclum Capital is facing allegations of securities and wire fraud, with its founder, Vuk Vukovic, accused of misrepresenting the fund's performance to investors. According to Bloomberg, prosecutors claim Vukovic supplied clients with return statements that overstated the fund's net asset value and investment performance.
One instance involved a fabricated account statement that inflated both the fund's net asset value and performance. Vukovic, 38, faces charges of securities fraud and wire fraud, each carrying a potential 20-year prison sentence if convicted. He appeared before a federal court on Thursday, was released on a $200,000 bond, and did not immediately respond to media inquiries.
Oraclum Capital also declined to comment. The alleged misrepresentations began in 2024, coming to light as the Securities and Exchange Commission investigated Oraclum and subpoenaed records. Prosecutors allege discrepancies between the fund's statements to investors and those supplied to the SEC by the fund's independent third-party administrator.
For example, a June 2024 statement provided to an investor showed a 4.66% return and a 12.29% annual gain, while the administrator's statement reported a 1.38% annual loss. The discrepancies extended beyond a single account, with roughly 20 investors allegedly receiving inflated year-to-date performance figures. FBI agents executed a search warrant at Oraclum's Manhattan offices, where Vukovic reportedly admitted to providing false brokerage statements to at least one investor. No other Oraclum employees or executives have been accused in the case.
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